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Lending Crowd Business Loan Review

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Lending Crowd's peer-to-peer lending for business offers competitive rates with no hidden fees.

Lending Crowd is not a bank but offers peer-to-peer lending to connect you with people who want to invest easily and safely in businesses. Your loan comes from an investor, and the whole process is completed online without the need to step outside of your home or office.

Details

Product NameLending Crowd Business Loan
Benefit DescriptionBorrow $2,000 to $200,000 for your business.
Interest Rate (p.a.)6.97%-16.99%
Min. Loan Amount$2,000
Max. Loan Amount$200,000
Loan Term3 or 5 years
Turnaround Time24 hours
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Applying for a business loan through a bank can often involve numerous pieces of documentation. Plus, the interest rates are not necessarily very favourable. Compare rates, fees, features and more below.

How does the Lending Crowd Business Loan work?

Applying for a business loan from Lending Crowd is straightforward and takes less than 10 minutes to complete. After filling in your application and uploading some documents, an assessment is undertaken to see whether you meet the requirements. You will then be presented with some rate and term options so you can decide which works best for you.

Once you confirm your rate and terms, investors are able to view your loan online. If one investor decides to fund the loan, the money will be paid straight into your bank account at a date of your choosing. If your loan is not funded within the allocated time, you are able to change the terms of the loan or add extra security to help your chances of being picked up by an investor.

Features of the Lending Crowd Business Loan

  • Quick application. Apply online in just minutes.
  • Flexible. Choose a rate and term that suit your business needs.
  • Competitive rates. With no overheads like a bank has, you get a great fixed rate. Interest rates range from 6.97%-16.99% .
  • Various loan amounts. Choose to borrow from $2,000 to $200,000 for a term of 3 years or 5 years.
  • No penalty for early repayment. If you want to pay off your loan early, you won’t be penalised.
  • No hidden fees. There are no extra monthly fees to worry about unless you default on your loan repayments.
  • Chance to reapply. If your loan application doesn’t attract an investor the first time, you can adjust the terms and security offered to try again.

How much does the loan cost?

Your loan grade and interest rate will be determined when you apply. These will be based on your creditworthiness assessment and the type of security that you offer for the loan. There are no monthly, early repayment or discharging security fees, but you will need to take the following into consideration:

  • Platform fee. This is basically your loan establishment fee and it differs according to the amount of the loan. This can range from $250-$1,450 depending on your borrowed loan amount.
  • Overdue and dishonour fees. 20% default interest is charged on all overdue loans. Further costs are added for arrears management, notices, repossession fees and court proceedings.

How to apply for the Lending Crowd Business Loan

Lending Crowd Business Loan applications take just minutes to complete. You can get your application underway by clicking the “Go to site” button on this page. Ensure you meet the following requirements before you apply:

  • You’ll need to have full ownership of your business
  • Have been in business for at least 18 months
  • Annual sales must be no less than $80,000
  • Be able to secure your loan with collateral
  • Good credit history required

You’ll also need to provide copies of:

  • Drivers’ licence
  • Bank statements

All Lending Crowd loans must be secured, which you can do with a vehicle or property that you own or are going to purchase. Also you, or you and your spouse, must have full ownership of the business. It is not possible to apply for an unsecured loan.

Bottom line

Choosing a business loan from the Lending Crowd is ideal for anyone who doesn’t want to deal with the red tape and higher interest rates that come with getting a bank loan. It is always a good idea to compare business loans from different lenders to ensure that you are getting the best deal for your situation.

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